Commercial Metals Company (CMC)

Days of inventory on hand (DOH)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Inventory turnover		7.41	6.52	6.57	8.14	7.93
DOH	days	49.23	55.95	55.59	44.85	46.01

August 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.41
= 49.23

The days of inventory on hand (DOH) for Commercial Metals Co. has exhibited fluctuations over the past five years, ranging from 50.29 days in 2019 to 60.71 days in 2021. The DOH decreased slightly in 2020 to 50.37 days, before showing an increase in 2021 and 2022. However, by the end of 2023, the DOH decreased to 54.09 days. This indicates that the company has been able to manage its inventory more efficiently in the most recent year compared to the previous two years. The trend suggests that the company may have adjusted its inventory management practices to optimize its working capital and minimize carrying costs. It would be necessary to analyze the reasons behind these fluctuations and understand the company's inventory turnover to determine the effectiveness of its inventory management strategies.